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ï "A concept whereby companies decide voluntarily to
contribute to a better society and a cleaner environment´
ï Group·s view:
ï It is the positive attitude of the corporate towards the
society in which it functions by rendering services and
facilities
ï It minimises the negative environmental and social
impacts of business and maximises their positive
environmental and social impacts
ð  

ï 
houpal
÷ 

ï Ònited Nations Industrial Development Organisation
(ÒNIDO) Award
ï International conference on Sharing Innovative Agribusiness
Solutions 2008 at
airo for IT
s exemplary initiatives in agri
business through the e
houpal.
ï Ashoka
hangemakers ¶Health For All· Award 2006
ï For the Rural Health Services model for delivery of health
services through the e
houpals.
ï The Stockholm
hallenge 2006
ï For using information technology for the economic
development of rural communities
÷ 

ï The
orporate Social Responsibility Award 2004 from The
nergy and Resources Institute(TRI) for its e
houpal
initiative

ï Innovation for India Award 2006 for IT
e
houpal in

the Social Innovations category for business organizations.

ï The Golden Peacock Innovation Award 2004

 
ï Information centers equipped with computer & internet located
in villages
ï Serve as a gathering place for exchange of information & e
commerce hub
ï Has been effective in cutting middlemen & reducing supply chain
ï Indirectly enhances farm productivity by giving detailed weather
forecasts, best practices in farming & supply of quality inputs
ï Improved price realization by making available live data on
markets, and expert opinion on expected future price movements
ð

ï IT
Rural malls located in the vicinity of 30 e choupal centers
ï A transparent best price sales window to farmers
ï Provide services like training, soil testing, product quality
certification & medical services
ï Strategic Implications

ï Strong Agricultural Supply
hain

ï Robust Distribution Network
ï Rural Market Penetration
ï Increased Quality and Productivity
°ð

ï mpower rural communities to adopt sustainable changes that makes
them compete economically with the rest of the country
ï Fosters local initiative to develop water and forest resources, opens new
industrial livelihoods & help in economic upliftment of women
ï Stagnation and deterioration have swiftly been replaced by change and
improvement.
ï Four problematic areas that it focuses are:
ï loss of productivity through soil erosion caused by spiralling land use and
decline of water tables and forest resources.
ï too much dependence on out modelled farm practices and inferior inputs
ï loss and disruption of farm incomes and non availability of alternative
livelihoods.
ï inadequate access to primary education and healthcare.
ð



ï AIM:
ï To address the livelihood problems of marginal farmers and the ecological
imperative of regenerating biomass and nurturing depleted soils.
ï Initiatives
ï Ònder agro forestry programme 1,07,521 hectares of wasteland has been
made cultivable and 451 million saplings have been planted.

ï IT
has thus helped to bring 16,400 hectares of wasteland under social
forestry benefiting 19,376 poor households in 480 villages.

ï The company organises wasteland owners into forest user groups who are
trained in silviculture, land development and plantation maintenance.

ï It has also provided a package of loans and supplies of high yielding, disease
resistant cloned saplings developed at its R&D Laboratory at Bhadrachalam.
ð


 
ï Strategic Implications:
ï Strengthening Supply
hain for Paperboards Business In an
innovative move, IT
linked the farmers· need for income to the
wood fibre needs of its paperboards business.
ï IT
facilitated them to convert their wastelands into pulpwood
plantations and thus found for them a commercially viable land use
alternative that can end their marginalization.
ï
reating An nvironmental Friendly
ompany The forestry
programme sequester 1.95 times the total carbon dioxide emitted by
IT
·s operations thereby ensuring its status as a ¶
arbon Positive·

ompany for the third year in a row.
ï IT
also used 163,250 tonnes of waste paper as raw materials in their
Paperboards business, thereby creating a ¶Positive Foot print· even in
the area of waste management.
V 
 
ï IT
has managed to set up 2884 water harvesting structures under the
programme
ï These are extremely important in the retention of soil water and
reversing the degradation of land
ï From 5 projects in two states, the programme has covered 24 projects in
7 states.
ï A total of 17,500 hectares in Madhya Pradesh, Bihar and Andhra
Pradesh, thus generating employment equal to 5.36 lakh person days
ï Strategic Implications
ï Increased Productivity
ï
reating An nvironmental Friendly
ompany: As a result of these
measures, IT
has sustained its status as a ater Positive
ompany for 7
consecutive years.
V!  

ï Rise in population and the shrinkage of farm plots have made it
difficult for a large number of rural families to be totally
dependent on their land as forms of a sustainable livelihood.

ï IT
started development of latent resources in the form of the

untapped earning power of women, by virtue of their ownership
of domestic cattle thereby increasing the purchasing power of the
rural sector

ï Set up of Self Help Groups (SHGs) facilitating the promotion of

micro credit groups and linked them to incense stick rolling and
embroidery
V!  
  
ï Strategic Implications

ï Sourcing for Agarbatti Business: Since 2003, IT
has been sourcing its
Agarbattis sold under the Mangaldeep brand from a number of small
scale and cottage units, most of them are the Self Help Groups set up
by IT
thus serving as a chain in IT
·s sourcing of agarbattis from the
small scale and cottage units and also end up becoming financially
empowered themselves.

ï Reaching Out to the Homemaker: The women·s empowerment

initiatives of IT
put it in direct contact with the homemaker in most
Indian families. These people now associate themselves with Brand
IT
and since they have a crucial say in all purchase decisions, IT

can leverage this association to its advantage.
 
  
ï AIM To increasing chances of employability either through
imparting training in skills, better education or reduction of
morbidity.
ï IT
·s initiatives are aimed at (i) improving infrastructure in
Government schools, (ii) providing supplementary education
to support children with school learning and exam
preparation and (iii) building community and parental
involvement with school education so that more children go
to school and finish school.

   
ï
ontributes Rs. 1 to this initiative from the sale of each
¶
lassmate· notebook (5000
rore market growing at a rate
of 9 10%)
ï State run schools are supported by IT

ï construct buildings
ï Providing electricity connections
ï distributes free uniforms and books

   
ï 3. established around 1885 Supplementary Learning
entres
to help poor children.
ï These provide extra coaching to thousands of primary school
goers from poor families.
ï A network of rural libraries and resource centres enrich the
process of learning for these children.
ï help stem drop outs and enable more children to complete
school and move on to higher standards.
ï 4. sale of IT
·s xpressions Greeting
ards helps the cause of
SOS Villages ³basically places that look after orphan
children in India.
V  "V VV
ï AIM to protect the environment, improve civic amenities,
as well as public health and hygiene.
V  "V 
   
ï Launched in Hyderabad, Bengaluru,
hennai, Khammam
District in Andhra Pradesh and Kovai District in Tamil Nadu.
ï spread to households, schools, government offices,
corporates and other institutions.
ï IT
provides special bags to accumulate dry waste like paper,
plastic and metals and arranges periodic collection through
outsourced agencies thereby emphasising the importance of
source segregation.
V  "V 
ï Strategic Implications:
ï led to the creation of significant employment opportunities.
ï Segregated dry waste can save almost 40% of municipal garbage
handling costs, which can be utilised to improve civic amenities.
ï Generating
ost ffective Raw Material: for the paper, plastics,
and metal and glass industries.
ï Helping create awareness among the public about the
advantages of the ¶Reduce Reuse Recycle· process.
 
ð ÷   
Live Stock Development
ï Aim
ï 70% of population owns cattle
and productivity is low so to increase
productivity
ï Initiatives
ï Artificial insemination to boost
milk by a factor of 6 to 9.
ï Door to door collection of milk channels the family·s production to
large dairies.
ï Impact
ï Increase in Livelihood of more than 1.7 lakh people
 
ð ÷   
ï Health and Hygiene
ï
ommunity Health Services Focussing on
hildren and
Mothers
ï Regular camps held to build awareness, promote healthcare and
provide curative health care.
ï Assists rural families to construct low cost sanitary units.

 ""
 ÷
#
ï Aim : changing these perceptions present in the minds of
people.
ï Initiatives : differently abled are provided with an
opportunity to work and become self sufficient.
ï Impact : succeeded in creating an atmosphere of sensitivity
and caring for differently abled people.
   $


ï Timeline
ï 1910 : IT
incorporated as Imperial Tobacco
ompany
ï 1970 ² The name of the company is changed to India Tobacco
o. Ltd.
ï 1972 ² The company enters the hotel business
ï 1974 ² The name of the company is changed to I.T.
. Ltd.
ï 1988 ² The company creates an Agribusiness Division
ï 2000 ² The company launches its own branded apparel and thus enters into
the retail segment
ï 2001 ² The company drops the dots from its name to become IT
Ltd.
ï 2002 ² The company launches Aashirvad brand and enters the atta market
ï 2004 ² The company successfully enters the biscuits segment with the launch
of Sunfeast
ð
 "

ï
hange of name : Strategically moved from its tobacco
business to other business segments
ï
SR activities : IT
·s diversification strategy coincided with
the strong commitment towards
SR activities
 ð  $
ï 1988 agribusiness was flagged off : Indian economy was
restricted.
ï 1991 economy opened : IT
didn·t had expertise to compete
at Global scale.
ï To build a unique and competitive channel to reach farmers,
which is different from the model used by un organised
players and MN
·s.
ï This was the birth of  choupal a shift in the business model
of procuring from mandis to directly procuring from
farmers.

ï IT
needed to build a strong image among the Indian
populace.
ï
SR initiatives has helped the society as a whole with giving a
huge reach to IT
in the rural India.
ï Other companies can take a cue from IT
and serving the
society is one cause but in the process they can get strategic
advantage
ï IT
has shown the way forward for Indian companies.
ï IT
living truly up to its motto, ¶nduring Value. For The
Nation. For The Shareholder·.
Thank You